Old Mutual SMEgo launches its 2nd annual Pitchathon

Major funding initiative increases prize money by over R1 million as South Africa battles 70% small business failure rate.

JOHANNESBURG, 24 June 2025 – Old Mutual SME Go has officially launched the second edition of its groundbreaking Pitchathon, offering a substantial R4.2 million in funding to support black-owned businesses in South Africa’s ICT and financial services sectors. The competition represents a significant increase from last year’s R3.0 million prize pool, with 14 businesses set to receive R300,000 each, up from 10 winners in 2024.

The announcement comes at a critical time for South African entrepreneurship, as the country experiences one of the world’s highest rates of small business failure, with up to 70% of businesses failing within the first five years of operation. Lack of access to funding remains the primary barrier, with recent surveys indicating that 86% of small and medium-sized enterprises (SMEs) consider financing essential for growth and sustainability.

Addressing Critical Funding Gaps in Black Business

Speaking at the launch event in Rosebank, Nobesuthu Ndlovu, Director of SME at Old Mutual Corporate, emphasised the platform’s role in bridging crucial market gaps. “Practically, the Old Mutual SME Go platform solves the challenge in funding. Lenders are seeking data to assess risk and determine the amount of funding. We also solve for the macro-economic challenge of employment by helping businesses grow by providing operational tools that are levers for business,” Ndlovu explained.

The funding Old Mutual initiative targets businesses with 51% black ownership, an annual turnover of R500,000, and a minimum six-month trading history. Applications opened today and will close on August 15, 2025. Live pitch events are scheduled for September 17 in Johannesburg and September 19 in Cape Town.

Success Stories Drive Expansion

The Old Mutual programme’s expansion follows remarkable success stories from the 2024 winners. Lindiwe Shibambo from Maid4U and Lebogang Maloisane from Softmeetz have utilised their winnings for critical operational needs, helping sustain their businesses during challenging economic conditions.

Dr. Mahmoud El-Sami, founder and CEO of Softex Technology and a 2024 winner, shared his experience: “We were in a dire situation in terms of finance in our business. We have an app that is currently in the development phase, so we needed additional funding to complete the development. The money came in handy – it took less than 30 days to get the funds, and everything was seamless.”

Systemic Challenges Require Bold Solutions

The launch featured a panel discussion addressing critical issues in financing black-owned businesses, with notable participants including Pali Lehohla, former Statistician General and founder of the Pan-African Institute for Evidence.

Lehohla presented stark statistics highlighting persistent economic disparities: “Only 13.7% of black South Africans are in the top income quintile, compared to 73% of white South Africans. Government funding vehicles do not feature adequately; banks have been at 5% funding levels since 2001. SMEs are being funded primarily by family and friends.”

He referenced the COVID-19 funding crisis as an example of systemic failures: “During COVID, R200 billion was made available for businesses, and only R17 billion was dispersed. Even in times of crisis, there is no urgency to address a critical growth vehicle for SMEs.”

Technology Driving Financial Inclusion

Lincoln Mali, CEO of Lesaka Technologies and founding president of the Association of Payment Service Providers South Africa (APPSA), highlighted how technology can democratise access to funding. His company has transformed from a loss-making entity to the most prominent fintech in South Africa by focusing on underserved communities.

“We focus on spaza shops, taverns, and small businesses that others will not see. By using transaction data and seeing the flows in businesses, we can provide up to R5 million in funding within 24 hours,” Mali explained. “We now have a billion-rand book lending to grant beneficiaries, proving these are viable customers when you see them as individual consumers.”

**Panellists are joined by launch MC, Arabile Gumede (left) at the launch of the Old Mutual SMEGo Pitchathon.**

Skills Development for the Fourth Industrial Revolution

Thabang Mkhuma, Technical Advisor for the Fourth Industrial Revolution at the Manufacturing, Engineering and Related Services SETA (MICT SETA), emphasised the importance of innovation-focused skills development.

“The fourth Industrial Revolution has forced us to rethink how we roll out skills development. We aim not to educate for unemployment, but rather to equip individuals to innovate and thrive. Innovating creates entrepreneurs. We have adopted the triple helix model of innovation involving academia, government, and industry,” Mkhuma stated.

Distinguished Judging Panel

This year’s competition features a stellar judging panel including Lincoln Mali, Michael Bowren (CEO of Finch Technologies), Tramayne Monaghan (Chief Investment Officer at Next176), Dimakatso Masiteng (CIO at NYDA), Anneline Dippenaar (CEO of Shop2Shop), Thabang Mkhuma, and Nobesuthu Ndlovu (Old Mutual).

Building an Entrepreneurial Ecosystem

“The Old Mutual SME Go Pitchathon is more than just a competition – it’s about creating an ecosystem where great ideas can grow into scalable, sustainable businesses. We’re investing in the businesses of South Africans who are building the digital and financial future of our country,” Ndlovu concluded.

The Old Mutual initiative addresses critical statistics showing that SMEs contribute approximately 22% to South Africa’s GDP but receive the least institutional support, with traditionally only 5% of small businesses securing formal funding approval.

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